USDN Triple Bottom Line Manual July 18, 2012

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "USDN Triple Bottom Line Manual July 18, 2012"

Transcription

1 USDN Triple Bottom Line Manual July 18, 2012 Decision Economics

2 USDN Triple Bottom Line Manual HDR developed this Return on Investment (ROI) model for the Urban Sustainability Directors Network (USDN) with input and review from Boston Redevelopment Authority (BRA). This model estimates the triple bottom line (TBL) impacts of investments economic, environmental, and social benefits. The model s structure focuses on a specific set of project investments to estimate ROI within a sustainability framework. The model is based on HDR s SROI approach to measure the economic, environmental, energy, and social benefits of these strategic investments. 1 The triple bottom line analysis model allows users to run four types of ROI analysis: 1. Energy Efficiency LEED, Energy Star, etc 2. Renewable Energy Wind, solar, etc 3. Transportation Highway, transit, bicycle, pedestrian, etc 4. Development Mixed use, transit oriented development (TOD), etc Tab descriptions This section provides a brief description of each tab within the excel model. In each tab, only certain fields will be available for the user to change. Structure&Logic Contains a graphic of the triple bottom line model s framework; ModelSetup Tables to calibrate the model. Users can select the region (state or national average) which will calibrate emissions parameters and utility rates. Users can also enter in custom wage rates. This tab contains the model s color-legend to identify cells or fields for users to input data. Model tabs o For each project type (Energy Efficiency, Renewable Energy, Transportation, and Development) there are three key analysis tabs. All tabs are numbered, grouped, and color coded together. o Inputs tab Each project input tab has fields for the user to enter in project specific input data. All input tabs are red. o Model tab Each project type has a tab which contains all the model calculations for annual cost and benefit concepts. The model tab also has a dashboard table at the top that displays all the major model information and assumptions. Model calculation tabs are purple. o Results tab Each project type has a results tab with summary data tables from the analysis. All result tabs are black. Parameters Major default parameters used within the model. The brown parameters tab is the last tab within the spreadsheet. 1 For more information, see: SROI%20Final.pdf and Urban Sustainability Directors Network 1

3 Analysis instructions Model Calibration The current form of the model is intended to be a project template. For each analysis the model should be renamed to differentiate from other analyses, or saved in a separate folder directory. Start the model calibration process in the ModelSetup tab. Refer to the Legend table to review which color coded tables and cells require user inputs. Parameters specific to each state are incorporated into the model. Filling in the following fields in the Model Specifications table will calibrate the model s parameters. Region specific and user defined assumptions are automatically adjusted through the model calibration process described below. 1. Select from the drop down box (1) the State or U.S. Average for the analysis area. This calibrates electricity generation emissions, average wages, and utility rates specifically to each state or the U.S. average. Each state generates electricity through different combinations of coal, hydroelectric, nuclear, or wind and therefore emissions vary by geography. 2. Select the region type from the next drop down box (2). This will calibrate certain emissions factors and costs to rural, urban, or dense urban areas. The more dense urban areas will accrue higher costs than rural areas. 3. Enter the starting analysis year in field (3). The default value is currently set to 2011, and will be applied to all analyses. 4. Finally enter the discount rate into field (4). The discount rate is used to compute net present value through discounting future benefits and costs (representing the time value of money), the default value is set to 5%. This discount rate will be applied to all analyses. 5. If local wage rate data is available, enter the hourly rate into field (5). This option overrides the model s state wage rate tables. The Parameters tab (brown tab at the end) displays all of the major parameters within the model including these calibrated parameters. Analysis Simulations There are three groups of color coded tabs that are used for the analysis. Each project type (Energy Efficiency, Renewable Energy, Transportation, and Development) will have its own input tab in red, a model calculations tab in purple, and a results tab in black. To begin, select the appropriate input tab and begin entering the input data. Some fields will have additional pop-up messages relaying additional guidance for inputs and some fields will restrict inputs to a certain range. Each project type will have 3 similar input tables. Table A will require key project information including the project name, the investment amount, the investment time period, useful life of the investment, and will ask what type of cost information is available. In Table A, the user must select the type of cost information available. Based upon the user s selection ( Summary or Detailed ) the appropriate cost data table will appear. By selecting Summary Table B1 will appear allowing the user to input summary based investment data. However, selecting Detailed will allow for detailed annual cost data to be entered in Table B2. Please fill in either Table B1 or B2 but not both. The remaining tables are specific to each project type. Refer to the next sections for more detailed information. The model also will provide Urban Sustainability Directors Network 2

4 an error message if the Total Investment ($) category in Table A does not match the investment totals in Table B1 or B2. Analysis Energy Efficiency and LEED The Energy Efficiency and LEED tabs will evaluate the projects that increase energy efficiency in terms of reduced energy consumption, environmental benefits, and reduced water use. Begin in the user input section by entering the project name, total investment amount, investment periods (start and end), and the useful life in years for the specific project in Table A. The remaining fields in Table A will enable the model to either evaluate the complete project cost or just the incremental cost of using energy efficient LEED certified materials versus conventional materials. So if you were to evaluate only the incremental cost and benefits of using energy efficient LEED certified materials enter the percentage of the total costs that represent the cost difference between the LEED certified and conventional materials in the Cost Parameter Adjustment Factor field. The cost parameter adjustment factor will adjust the benefitcost to utilize ONLY the incremental cost if you enter a cost parameter adjustment factor and select yes in the Use Incremental Cost Adj Factor field. For example, if LEED certified insulation costs 6% more per volume, the user would enter 6% and select Yes in the Use Incremental Cost Adj Factor. 2 Next, select Detailed or Summary in the Cost Information field. This will enable the user to enter either summary cost data or detailed annual cost information in Tables B1 or B2. Enter the full project cost data information in Tables B1 or B2; the cost parameter adjustment factor will be applied automatically within the model. Select Yes in the Use Custom Utility Rates field, if local utility rates are available. This will activate Table D, where the user can enter custom water, sewer, gas, and electric rates. Enter the savings in the proper units in Table C for energy, environmental, and water impacts. All values should be entered as a savings; therefore if the project reduces energy consumption by 50,000 kwhs annually, the value should be entered as a positive 50,000. Any increase in consumption should be entered as a negative value. Lastly, if the project is related to electricity, select the electricity consumer type to calibrate the utility cost parameters. The Dashboard table at the top of the 1.EnergyEfficiency tab for energy efficiency and renewable energy displays the major assumptions entering the analysis. Once the user input tables are filled in, the output is ready for review in the results section within the tab, and summary data tables are available in the 1.ResultsEnergy tab. Analysis Renewable Energy The Renewable Energy tabs will evaluate the costs and benefits of increasing generation of renewable energy, which in-turn reduces the use of conventional energy sources (fossil fuels). In the user input section, begin entering the project name, total investment amount, investment periods (start and end), the useful life in years, and the project type for the specific project in Table A. Selecting either Detailed or Summary in the Cost Information field will enable the user to enter either summary cost data in 2 Typically, there is a premium on LEED certified materials. The premium range depends on the materials and project. Urban Sustainability Directors Network 3

5 Table B1 or detailed annual cost information in Table B2. Finally, select either custom or standard in the Utility rates field. By choosing the standard utility rates, the model will use the parameters selected in the ModelSetup tab to pull rates from the state utility tables, while selecting Custom will activate Table D where the user can enter custom utility rates. Enter the savings in the proper units (kwhs and therms) in Table C for energy and environmental impacts. All renewable energy production values should be entered as a positive value. In Table C there is an item for a reduction in therms, which would most likely occur when a building implemented renewable energy sources which could offset or reduce the use of a natural gas boiler or generator, and thus lower the therms of heat. Lastly, enter any renewable energy tax credits provided per MWh or annual tax credits into Table E. The Dashboard table in the 2.RenewableEnergy tab displays key assumptions entering the analysis. Once the user input tables are filled in, the output is ready for review in the results section within the tab, and summary data tables are available in the 2.ResultsRE tab. Analysis Transportation The transportation tabs will evaluate the benefits and cost of roadway, pedestrian, bicycle, and transit improvements. The transportation analysis tab has precise data requirements, which require external analysis of transportation impacts. Since this is a sketch planning tool, it is assumed that analysis will likely go through an independent benefit-cost analysis. Transportation data can be obtained from most conceptual design and traffic reports or can be estimated from results tables within most traffic analysis models, for instance Synchro. In the user input section, begin entering the project name, total investment amount, investment periods (start and end) and the useful life in years for the specific project in Table A. Next select the project type: pedestrian and bicycle, roadway, transit, or multi-modal. Select multi-modal if the project improves transportation for more than one mode. Select Summary in the Cost Information field if you only have basic cost information regarding project totals. All costs will be spread out equally throughout the investment period identified in Table A. If you have detailed cost information, select Detailed in the Cost Information field and proceed to Table B2 to fill in capital and O&M cost information for each year. Tables C1, C2, and C3 are critical to the transportation analysis. Table C1 is for roadway transportation analysis. All roadway values in Table C1 that represent a reduction in traffic should be entered as a positive number. It is critical that the user only enter the change rather than the new level of VMT or VHT. All increases in traffic indicators in Table C1 should be entered as a negative number. All pedestrian and bicycle transportation data should be entered into Table C2, while all transit data should be entered into Table C3. Pedestrian, bicycle, and transit data should enter as net new traffic only and as positive values in Tables C2 and C3. The Dashboard table in the 3.Transportation tab provides summary information of all the transportation data entering the model. Once the user input tables are filled in, the output is ready for Urban Sustainability Directors Network 4

6 review in the results section within the tab, and summary data tables are available in the 3.ResultsTransp tab. Analysis Development The Development tabs are for analysis of development projects, like TOD, that improve density, walkability, retail sales, and other economic impacts. In the user input section, begin entering the project name, total investment amount, investment periods (start and end) and the useful life in years for the specific project in Table A. Select Summary in the Cost Information field if you only have basic cost information regarding project totals. All costs will be spread out equally throughout the investment period identified in Table A. If you have detailed cost information, select Detailed in the Cost Information field and proceed to Table B2 to fill in capital and O&M cost information for each year. Table C is split into five major development impact categories: 1) retail sales, 2) health and walkability, 3) real estate, 4) economic impacts retail, and 5) economic impacts - office. The retail sales portion of the table focuses on new spending and retail sales in the area due to the development investment. The change in retail sales should be confined to the development building or a short radius around it (e.g. within 0.25 miles of the development). The real estate section focuses on property value premiums and increased property tax collections due to the development investment. Since an increase in property value is gradual, the property value premium is spread over the useful life of the investment following the completion of the project. Lastly, the economic impacts provide a metric for net new retail and office businesses in the area in terms of jobs and wages. The Dashboard table in the 4.Development tab provides key assumptions entering the analysis. Once the user input tables are filled in, the output is ready for review in the results section within the tab, and summary data tables are available in the 4.ResultsDevelop tab. Analysis Tabs The model calculations tabs in purple have four major components. First, the Dashboard table at the top displays many of the user inputs and assumptions for the analysis. Second, the capital cost section displays the annual investment and any operations and maintenance costs. Third, the benefits section provides the individual calculations for each benefit concept. Finally, the results section displays the benefit-cost analysis and the itemized components entering the benefit-cost framework. The results section also includes a cash flow analysis which determines the payback period, return on investment, and internal rate of return. The major results are linked to the results tabs. Urban Sustainability Directors Network 5

7 Results Tabs The result tabs each contain major results of each analysis. The TBL Results 2020 table provides typical decision metrics from the benefit-cost analysis and annual benefits for the year These metrics include: Net Present Value (NPV): The net value of an investment, calculated as benefits less costs, with both expressed in present-value monetary terms (PV Benefits PV Costs). Return on Investment (ROI): The arithmetic average rate of return per year on capital invested. Discounted Payback Period (DPP): The period of time required for the discounted return on an investment to recover the sum of the original investment. Internal Rate of Return (IRR): The discount rate at which the net present value of a project would be zero. Benefit-Cost Ratio (BCR): The overall value of money of a project, expressed as the ratio of the benefits of a project relative to its costs, with both expressed in present value monetary terms (PV Benefits / PV Costs). Each results tab also includes the annual value of benefits for each project for the year The annual benefit categories will vary as each project type has its own specific set benefits (e.g. transportation and energy project benefits will differ). Additionally each project type will have supplementary benefit tables specific to each project for the year Urban Sustainability Directors Network 6

TRIPLE BOTTOM LINE CALCULATOR

TRIPLE BOTTOM LINE CALCULATOR TRIPLE BOTTOM LINE CALCULATOR PRESENTED BY: ALVARO LIMA BRA Director of Research City of Boston January 2012 IEDC 2012 Leadership Summit Overview of Presentation Background and rationale of the project

More information

FINANCIAL AND RISK ANALYSIS WITH RETSCREEN SOFTWARE. SLIDE 1: Financial and Risk Analysis with RETScreen Software

FINANCIAL AND RISK ANALYSIS WITH RETSCREEN SOFTWARE. SLIDE 1: Financial and Risk Analysis with RETScreen Software Training Module SPEAKER S NOTES FINANCIAL AND RISK ANALYSIS WITH RETSCREEN SOFTWARE CLEAN ENERGY PROJECT ANALYSIS COURSE This document provides a transcription of the oral presentation (Voice & Slides)

More information

MBA Teaching Note 08-02 Net Present Value Analysis of the Purchase of a Hybrid Automobile 1

MBA Teaching Note 08-02 Net Present Value Analysis of the Purchase of a Hybrid Automobile 1 MBA Teaching Note 08-02 Net Present Value Analysis of the Purchase of a Hybrid Automobile 1 In this day and age of high energy prices and a desire to be more environmentally friendly, the automobile industry

More information

BENEFIT-COST ANALYSIS Financial and Economic Appraisal using Spreadsheets

BENEFIT-COST ANALYSIS Financial and Economic Appraisal using Spreadsheets BENEFIT-COST ANALYSIS Financial and Economic Appraisal using Spreadsheets Ch. 3: Decision Rules Harry Campbell & Richard Brown School of Economics The University of Queensland Applied Investment Appraisal

More information

Intersection Cost Comparison Spreadsheet User Manual ROUNDABOUT GUIDANCE VIRGINIA DEPARTMENT OF TRANSPORTATION

Intersection Cost Comparison Spreadsheet User Manual ROUNDABOUT GUIDANCE VIRGINIA DEPARTMENT OF TRANSPORTATION Intersection Cost Comparison Spreadsheet User Manual ROUNDABOUT GUIDANCE VIRGINIA DEPARTMENT OF TRANSPORTATION Version 2.5 i Virginia Department of Transportation Intersection Cost Comparison Spreadsheet

More information

Sustainable Return on Investment

Sustainable Return on Investment Sustainable Return on Investment (SROI) The Associated General Contractors of America March 21 st, 2011 Stephane Larocque: Associate Vice-President Economics and Finance, HDR Inc. Contents 1. Introduce

More information

TECHNICAL GUIDE A GUIDE FOR THE SELECTION OF ENERGY EFFICIENT TECHNOLOGIES

TECHNICAL GUIDE A GUIDE FOR THE SELECTION OF ENERGY EFFICIENT TECHNOLOGIES TECHNICAL GUIDE A GUIDE FOR THE SELECTION OF ENERGY EFFICIENT TECHNOLOGIES Table of Contents 1. Introduction 1 2. Estimating Energy Savings and Costs 1 Direct Energy Savings 1 Indirect Energy Savings 2

More information

Analysis of a 30 Percent by 2030 National Renewable Electricity Standard

Analysis of a 30 Percent by 2030 National Renewable Electricity Standard Analysis of a 30 Percent by 2030 National Renewable Electricity Standard Alison Bailie, Steve Clemmer, and Jeff Deyette May 12, 2015 Photo: istock 2015 Union of Concerned Scientists www.ucsusa.org/30by2030nationalres.pdf

More information

FINANCIAL EVALUATION OF ENERGY SAVING PROJECTS: BUILDING THE BUSINESS CASE

FINANCIAL EVALUATION OF ENERGY SAVING PROJECTS: BUILDING THE BUSINESS CASE FINANCIAL EVALUATION OF ENERGY SAVING PROJECTS: BUILDING THE BUSINESS CASE CFAA 2010 Canadian Rental Housing Conference June 14, 2010 Presented by Robert Greenwald, PEng., MBA President, Prism Engineering

More information

SUSTAINABLE RETURN ON INVESTMENT SROI

SUSTAINABLE RETURN ON INVESTMENT SROI SUSTAINABLE RETURN ON INVESTMENT U.S. Army Corps of Engineers New Orleans, LA; Hurricane Storm Damage Risk Reduction System Sustainable Return on Investment () Can Help Get Projects Funded This is a time

More information

Renewable Energy. 2015 LORD Green Real Estate Strategies, Inc.

Renewable Energy. 2015 LORD Green Real Estate Strategies, Inc. Renewable Energy Benefits of Renewable Energy Meet real estate portfolio GHG emission reduction/reporting goals Use energy that produces no GHG emissions from fossil fuels and reduces air pollution Mitigate

More information

EV CHARGING FINANCIAL ANALYSIS TOOL USER GUIDE

EV CHARGING FINANCIAL ANALYSIS TOOL USER GUIDE EV CHARGING FINANCIAL ANALYSIS TOOL USER GUIDE A free tool designed to evaluate the financial viability of EV charging infrastructure investments involving multiple private and public sector partners Published

More information

Transforming America s Energy Future. Kentucky. Energy Statistics. Developed by

Transforming America s Energy Future. Kentucky. Energy Statistics. Developed by Transforming America s Energy Future Kentucky Energy Statistics Developed by 2 2 Summary The first edition of Kentucky Energy Statistics is offered by the National Association for State Energy Officials

More information

CE Entrepreneurship. Investment decision making

CE Entrepreneurship. Investment decision making CE Entrepreneurship Investment decision making Cash Flow For projects where there is a need to spend money to develop a product or establish a service which results in cash coming into the business in

More information

Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2015

Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2015 June 2015 Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2015 This paper presents average values of levelized costs for generating technologies that

More information

Module 10: Assessing the Business Case

Module 10: Assessing the Business Case Module 10: Assessing the Business Case Learning Objectives After completing this section, you will be able to: Do preliminary assessment of proposed energy management investments. The measures recommended

More information

Solar Water Heating as a DSM Strategy for Colorado Utilities & Their Customers

Solar Water Heating as a DSM Strategy for Colorado Utilities & Their Customers Solar Water Heating as a DSM Strategy for Colorado Utilities & Their Customers Joe Bourg October 22, 2009 3 rd Colorado Utility Efficiency Exchange Millennium Energy, LLC Golden, Colorado jbourg@q.com

More information

Project Evolution & Estimation :cash flow forecasting, cost benefit evolution techniques, risk evolution, Cost benefit analysis

Project Evolution & Estimation :cash flow forecasting, cost benefit evolution techniques, risk evolution, Cost benefit analysis Project Evolution & Estimation :cash flow forecasting, cost benefit evolution techniques, risk evolution, Cost benefit analysis EA Cost-benefit Analysis A standard way to assess the economic benefits Two

More information

11 PERFORMING FINANCIAL ANALYSIS

11 PERFORMING FINANCIAL ANALYSIS 11 PERFORMING FINANCIAL ANALYSIS 11.1 Introduction When planning an energy efficiency or energy management project, the costs involved should always be considered. Therefore, as with any other type of

More information

Loan Comparison. With this program, the user can compare two loan alternatives or evaluate the potential refinancing of an existing loan.

Loan Comparison. With this program, the user can compare two loan alternatives or evaluate the potential refinancing of an existing loan. Loan Comparison With this program, the user can compare two loan alternatives or evaluate the potential refinancing of an existing loan. Fast Tools & Resources Loans may differ in their interest rates,

More information

CARNEGIE MELLON UNIVERSITY CIO INSTITUTE

CARNEGIE MELLON UNIVERSITY CIO INSTITUTE CARNEGIE MELLON UNIVERSITY CIO INSTITUTE CAPITAL BUDGETING BASICS Contact Information: Lynne Pastor Email: lp23@andrew.cmu.edu RELATED LEARNGING OBJECTIVES 7.2 LO 3: Compare and contrast the implications

More information

How to Earn the LEED Green Power Credit

How to Earn the LEED Green Power Credit 3D EG REES WH ITE PAPER How to Earn the LEED Green Power Credit Using on-site and off-site renewable energy to mitigate the impact of greenhouse gas emissions associated with a LEED project s energy use

More information

$1,300 + 1,500 + 1,900 = $4,700. in cash flows. The project still needs to create another: $5,500 4,700 = $800

$1,300 + 1,500 + 1,900 = $4,700. in cash flows. The project still needs to create another: $5,500 4,700 = $800 1. To calculate the payback period, we need to find the time that the project has recovered its initial investment. After three years, the project has created: $1,300 + 1,500 + 1,900 = $4,700 in cash flows.

More information

Oklahoma State University Spears School of Business. NPV & Other Rules

Oklahoma State University Spears School of Business. NPV & Other Rules Oklahoma State University Spears School of Business NPV & Other Rules Slide 2 Why Use Net Present Value? Accepting positive NPV projects benefits shareholders. NPV uses cash flows NPV uses all the cash

More information

Power Purchase Agreement Financial Models in SAM 2013.1.15

Power Purchase Agreement Financial Models in SAM 2013.1.15 Power Purchase Agreement Financial Models in SAM 2013.1.15 SAM Webinar Paul Gilman June 19, 2013 NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable

More information

Renewable Choice Energy

Renewable Choice Energy Catawba College Table of Contents About Renewable Choice The Problem: Electricity Production Today The Solutions: Renewable Energy Sources Renewable Energy Credits (RECs) Who can participate in Renewable

More information

HO-23: METHODS OF INVESTMENT APPRAISAL

HO-23: METHODS OF INVESTMENT APPRAISAL HO-23: METHODS OF INVESTMENT APPRAISAL After completing this exercise you will be able to: Calculate and compare the different returns on an investment using the ROI, NPV, IRR functions. Investments: Discounting,

More information

Apple Netting Financial Analysis Tool

Apple Netting Financial Analysis Tool Step by Step Guide to the Apple Netting Financial Analysis Tool Guide prepared by the Apple & Pear Growers Association of SA Tool developed by NaturalLogic (Australia) Pty Ltd and EconSearch Pty Ltd Funding

More information

CHP - The Business Case

CHP - The Business Case CHP - The Business Case An Introduction to Combined Heat and Power CHP 100 1 Acknowledgements 2 Overview! When Does CHP Make Sense! Where is CHP Practical?! Problems in CHP Economic Analysis 3 When Does

More information

Why Use Net Present Value? The Payback Period Method The Discounted Payback Period Method The Average Accounting Return Method The Internal Rate of

Why Use Net Present Value? The Payback Period Method The Discounted Payback Period Method The Average Accounting Return Method The Internal Rate of 1 Why Use Net Present Value? The Payback Period Method The Discounted Payback Period Method The Average Accounting Return Method The Internal Rate of Return Problems with the IRR Approach The Profitability

More information

Procedure for Nominating Renewable Energy Credit Offsets

Procedure for Nominating Renewable Energy Credit Offsets Procedure for Nominating Renewable Energy Credit Offsets A. Nominations for renewable energy credit offsets shall be made jointly by the generating facility owner and the intended recipients of the offsets.

More information

Proposal prepared for Happy Solar Owner

Proposal prepared for Happy Solar Owner Happy Solar Owner 1234 Sunny Lane Portland, OR 97201 Mailing Address: Happy Solar Owner 1234 Sunny Lane Portland, OR 97201 RE: SolarWorld Sunkits System Proposal: CASSK-## Presented by: SolarWorld Authorized

More information

Getting Started with Web Service Tools for Whole Building Analysis

Getting Started with Web Service Tools for Whole Building Analysis Autodesk Ecotect Analysis 2010 Getting Started with Web Service Tools for Whole Building Analysis Customers who add subscription to their Autodesk Ecotect Analysis license can access 1 whole building energy,

More information

Cost-effectiveness and economic incidence of a clean energy standard

Cost-effectiveness and economic incidence of a clean energy standard Cost-effectiveness and economic incidence of a clean energy standard Bryan Mignone Office of Policy & International Affairs US Department of Energy International Energy Workshop June 21, 213 Collaborators:

More information

LIFE CYCLE COST CALCULATIONS

LIFE CYCLE COST CALCULATIONS LIFE CYCLE COST CALCULATIONS Fundamental Concepts Time Value of Money The value of money today and money that will be spent in the future are not equal. This concept is referred to as the time value of

More information

Rules of Thumb Energy Efficiency in Buildings

Rules of Thumb Energy Efficiency in Buildings Energy Efficiency in Buildings Energy Savings Cost Savings Increased Productivity Economic Development Other Standard lighting retrofits: $0.90-$1.20 per square foot. High-efficiency packaged and split

More information

Chapter 9 Net Present Value and Other Investment Criteria Chapter Organization

Chapter 9 Net Present Value and Other Investment Criteria Chapter Organization T9.1 Chapter Outline Chapter 9 Net Present Value and Other Investment Criteria Chapter Organization! 9.1 Net Present Value! 9.2 The Payback Rule! 9.3 The Average Accounting Return! 9.4 The Internal Rate

More information

How to Sell Energy Efficiency

How to Sell Energy Efficiency How to Sell Energy Efficiency PRESENTED BY SCOTT JASINSKI THE SMART ENERGY DESIGN ASSISTANCE CENTER (SEDAC) OF THE UNIVERSITY OF ILLINOIS ChicaGO Green 2011 Conference How To Sell Energy Efficiency: I.

More information

12MAP-21, a funding and authorization bill to govern U.S. federal surface MONITORING IMPLEMENTATION AND PERFORMANCE

12MAP-21, a funding and authorization bill to govern U.S. federal surface MONITORING IMPLEMENTATION AND PERFORMANCE MONITORING IMPLEMENTATION AND PERFORMANCE 12MAP-21, a funding and authorization bill to govern U.S. federal surface transportation spending, creates a data-driven, performance-based multimodal program

More information

Overview of State and Local Green Building Incentives Tri-state Area (New York, New Jersey and Connecticut)

Overview of State and Local Green Building Incentives Tri-state Area (New York, New Jersey and Connecticut) Overview of State and Local Green Building Incentives Tri-state Area (New York, New Jersey and Connecticut) States, local governments and utility companies offer various financial incentives to promote

More information

SUSTAINABLE SROI RETURN ON INVESTMENT. SROI Enhanced Decision Making Framework

SUSTAINABLE SROI RETURN ON INVESTMENT. SROI Enhanced Decision Making Framework SUSTAINABLE RETURN ON INVESTMENT Enhanced Decision Making Framework CAN HELP GET THE RIGHT PROJECTS FUNDED/APPROVED There is no lack of worthy projects and real needs; so how do you choose the right investment?

More information

Some micro- and macro-economics of offshore wind*

Some micro- and macro-economics of offshore wind* Some micro- and macro-economics of offshore wind* EPSRC SUPERGEN Wind Energy Hub University of Strathclyde May 2016 Fraser of Allander Institute Energy Modelling Team Fraser of Allander Institute Department

More information

Green Jobs and Economics Margy Goodman

Green Jobs and Economics Margy Goodman Green Jobs and Economics Margy Goodman INTRODUCTION Increasing the number of green jobs available and working towards energy efficient and renewable energy innovations will be some of the strongest assets

More information

Net Present Value (NPV)

Net Present Value (NPV) Investment Criteria 208 Net Present Value (NPV) What: NPV is a measure of how much value is created or added today by undertaking an investment (the difference between the investment s market value and

More information

Community and Renewable Energy Scheme Project Development Toolkit

Community and Renewable Energy Scheme Project Development Toolkit Community and Renewable Energy Scheme Project Development Toolkit Balance Sheet Equity Investment Community Bond Issues Community Vehicle Crowd Funding Debentures a form of bond Debt Debt Service Cover

More information

Green Building Incentives in New York, New Jersey and Connecticut

Green Building Incentives in New York, New Jersey and Connecticut Green Building Incentives in New York, New Jersey and Connecticut By Yuanshu Deng and Jared Eigerman Goulston & Storrs October 2009 The reduction of greenhouse gas emissions to mitigate climate change

More information

HOW WILL PROGRESS BE MONITORED? POLICY AREA. 1. Implement the 2040 Growth Concept and local adopted land use and transportation plans

HOW WILL PROGRESS BE MONITORED? POLICY AREA. 1. Implement the 2040 Growth Concept and local adopted land use and transportation plans PERFORMANCE MONITORING APPROACH OAR 660-044-0040(3)(e) directs Metro to identify performance measures and targets to monitor and guide implementation of the Climate Smart Strategy. The purpose of performance

More information

Massachusetts $ Savings and Job Gains from Energy Efficiency in Buildings & Transportation

Massachusetts $ Savings and Job Gains from Energy Efficiency in Buildings & Transportation Massachusetts $ Savings and Job Gains from Energy Efficiency in Buildings & Transportation Marc Breslow, Ph.D. Director of Transportation & Buildings Policy Executive Office of Energy & Environmental Affairs

More information

Wind Turbine Manufacturers. Renewables Advocates. Retail Customers. Wind Project Generators. Gas, Nuclear and other Generators. Electric Utilities

Wind Turbine Manufacturers. Renewables Advocates. Retail Customers. Wind Project Generators. Gas, Nuclear and other Generators. Electric Utilities Wind Turbine Manufacturers Wind Project Generators Coal, Gas, Nuclear and and other Generators Renewables Advocates Electric Utilities Regulatory Commissions Retail Customers Wind Turbine Manufacturers

More information

Wind and solar reducing consumer bills An investigation into the Merit Order Effect

Wind and solar reducing consumer bills An investigation into the Merit Order Effect Switch for Good Wind and solar reducing consumer bills An investigation into the Merit Order Effect Executive summary Concerns over the cost of renewable subsidy schemes have led to significant policy

More information

Greenhouse gas abatement potential in Israel

Greenhouse gas abatement potential in Israel Greenhouse gas abatement potential in Israel Israel s GHG abatement cost curve Translated executive summary, November 2009 1 Executive Summary Background At the December 2009 UNFCCC Conference in Copenhagen,

More information

Annual Electricity and Heat Questionnaire

Annual Electricity and Heat Questionnaire Annual Electricity and Heat Questionnaire IEA Statistics Course Pierre Boileau International Energy Agency OVERVIEW Global trends in electricity production 1973-2009 IEA Annual Electricity and Heat Questionnaire

More information

Republic Polytechnic Continuing Education & Training Course Structure for : Finance Management

Republic Polytechnic Continuing Education & Training Course Structure for : Finance Management Republic Polytechnic Continuing Education & Training Course Structure for : Finance Management Module Finance Management Description Finance Management is a module that serves to cover key financial aspects

More information

CHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA

CHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA CHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA Answers to Concepts Review and Critical Thinking Questions 1. A payback period less than the project s life means that the NPV is positive for

More information

Wesleyan University. Electrical Power Study

Wesleyan University. Electrical Power Study 1 Wesleyan University Business Continuity Planning Electrical Power Study 2 October 2011 snow storm 80% of Connecticut lost power including Wesleyan Wesleyan buildings were without power 3-6 days Without

More information

Appendix J Santa Monica Travel Demand Forecasting Model Trip Generation Rates

Appendix J Santa Monica Travel Demand Forecasting Model Trip Generation Rates Appendix J Santa Monica Travel Demand Forecasting Model Trip Generation Rates SANTA MONICA TRAVEL DEMAND FORECASTING MODEL TRIP GENERATION RATES SUBMITTED BY: 201 Santa Monica Blvd., Suite 500 Santa Monica,

More information

Comparison of CO 2 Abatement Costs in the United States for Various Low and No Carbon Resources. Total System Levelized Cost Based on EIA LCOE

Comparison of CO 2 Abatement Costs in the United States for Various Low and No Carbon Resources. Total System Levelized Cost Based on EIA LCOE Comparison of CO 2 Abatement Costs in the United States for Various Low and No Carbon Resources Every year the Energy Information Administration (EIA) publishes its Annual Energy Outlook (AEO). In the

More information

Based on the AASHTO: PREPARED FOR

Based on the AASHTO: PREPARED FOR Based on the AASHTO: Ne va da PREPARED FOR Pr oj P R ec t O C Sa E S fety S September 2015 Introduction The Nevada Department of Transportation (NDOT) has as its first department goal to optimize safety

More information

Galveston SROI Case Study Condolidated Report

Galveston SROI Case Study Condolidated Report Galveston SROI Case Study Condolidated Report Prepared for: Houston-Galveston Area Council and the City of Galveston May 2013 Introduction This document is a compilation of the reports produced during

More information

Economic and Rate Impact Analysis of Clean Energy Development in North Carolina 2015 Update

Economic and Rate Impact Analysis of Clean Energy Development in North Carolina 2015 Update February 2015 Economic and Rate Impact Analysis of Clean Energy Development in North Carolina 2015 Update Prepared for North Carolina Sustainable Energy Association 4800 Six Forks Rd Suite 300 Raleigh,

More information

The Economics of Solar in Alberta

The Economics of Solar in Alberta The Economics of Solar in Alberta A White Paper Authors: David Kelly, P.Eng, David Vonesch, BSc. Eng, and Tim Schulhauser, P.Eng, SkyFire Energy Inc. The Choice Albertans have a choice about how they purchase

More information

Blended Value Feasibility Study Cash Flow Forecast User Guide

Blended Value Feasibility Study Cash Flow Forecast User Guide Blended Value Feasibility Study Cash Flow Forecast User Guide OVERVIEW The Cash Flow Forecast is the listing of the sources and expenditures of cash plus the timing of when the cash is moving in and out

More information

Bank: The bank's deposit pays 8 % per year with annual compounding. Bond: The price of the bond is $75. You will receive $100 five years later.

Bank: The bank's deposit pays 8 % per year with annual compounding. Bond: The price of the bond is $75. You will receive $100 five years later. ü 4.4 lternative Discounted Cash Flow Decision Rules ü Three Decision Rules (1) Net Present Value (2) Future Value (3) Internal Rate of Return, IRR ü (3) Internal Rate of Return, IRR Internal Rate of Return

More information

Mailing Address 4650 Adohr Ln. Camarillo, CA 93012. 25 Year Financial Analysis. $1,051 / mo (avg) Cost Breakdown. System Description

Mailing Address 4650 Adohr Ln. Camarillo, CA 93012. 25 Year Financial Analysis. $1,051 / mo (avg) Cost Breakdown. System Description Summary Customer Dan Glaser - CASSK-13-00932 SolarWorld USA Site Address 4650 Adohr Ln. Camarillo, CA 93012 Mailing Address 4650 Adohr Ln. Camarillo, CA 93012 Company Contact We turn sunlight into power

More information

Foreword. We hope you find this survey informative and useful. Sincerely, 2011 nsba EnErgy SurvEy 2

Foreword. We hope you find this survey informative and useful. Sincerely, 2011 nsba EnErgy SurvEy 2 2011 Energy Survey Foreword The energy use of a single small business may be minimal but when taken collectively, the 26.9 million small businesses in this country consume a significant amount of energy.

More information

1. Nuclear - In YOUR OWN WORDS (not your partner s words) explain how this energy source works.

1. Nuclear - In YOUR OWN WORDS (not your partner s words) explain how this energy source works. ENERGY RESOURCES ACTIVITY Integrated Science 4 Name: Date: Period: Directions: In groups, you will be going from station to station answering questions about differing energy resource. Each individual

More information

Figure 1: Security Warning Enable Macros Excel 2003

Figure 1: Security Warning Enable Macros Excel 2003 Cisco Wireless Solution ROI Calculator This guide offers an overview on the ROI calculator created to measure the business value of implementing Cisco Wireless solutions. Overview Cisco commissioned Forrester

More information

SMALL BUSINESS ENERGY LOAN PROGRAM APPLICATION

SMALL BUSINESS ENERGY LOAN PROGRAM APPLICATION SMALL BUSINESS ENERGY LOAN PROGRAM APPLICATION SECTION A: BUSINESS INFORMATION Business Name: Business Address: Business Telephone: Business Fax: Email: Website: Federal Tax I.D. No.: NAICS Code (if known):

More information

Proposal Metrics Dashboard. What Gets Measured Gets Done

Proposal Metrics Dashboard. What Gets Measured Gets Done Proposal Metrics Dashboard What Gets Measured Gets Done Topics Why Keep Metrics? What Metrics Should We Keep? What is the Easiest Way to Collect Metrics? What is the Easiest Way to Report Metrics? Tips

More information

California Climate Challenge Methodology April 25, 2013

California Climate Challenge Methodology April 25, 2013 California Climate Challenge Methodology April 25, 2013 Feebates Semi Truck Fuel Efficiency Pay- As- You- Drive Insurance Gas Tax Parking Prices Give a rebate to owners of more efficient vehicles while

More information

Performing Net Present Value (NPV) Calculations

Performing Net Present Value (NPV) Calculations Strategies and Mechanisms For Promoting Cleaner Production Investments In Developing Countries Profiting From Cleaner Production Performing Net Present Value (NPV) Calculations Cleaner Production Profiting

More information

SAP 2012 IN A NUTSHELL

SAP 2012 IN A NUTSHELL SAP 2012 IN A NUTSHELL The consultation version of the SAP 2012 methodology was published by the Department of Energy and Climate Change (DECC) on January 4th 2012. This article from Dyfrig Hughes of National

More information

Simple project evaluation spreadsheet model

Simple project evaluation spreadsheet model Simple project evaluation spreadsheet model Africa Electricity Institute Practitioner Workshop 15 November 2011 -- Dakar, Senegal Chris Greacen Two very different models Used by: Excel financial model

More information

Economic Impact Analysis of Clean Energy Development in North Carolina 2014 Update

Economic Impact Analysis of Clean Energy Development in North Carolina 2014 Update April 2014 Economic Impact Analysis of Clean Energy Development in North Carolina 2014 Update Prepared for North Carolina Sustainable Energy Association P.O. Box 6465 Raleigh, NC 27628 Prepared by RTI

More information

How are energy companies adapting to the changing rules in the energy sector? Jaroslav Zlabek Country President Schneider Electric Polska

How are energy companies adapting to the changing rules in the energy sector? Jaroslav Zlabek Country President Schneider Electric Polska How are energy companies adapting to the changing rules in the energy sector? Jaroslav Zlabek Country President Schneider Electric Polska Sopot November, 2011 the energy challenges today 2 The solution

More information

REPORT. October 15, 2013. Public Service Commission of Wisconsin 610 North Whitney Way P.O. Box 7854 Madison, WI 53707-7854

REPORT. October 15, 2013. Public Service Commission of Wisconsin 610 North Whitney Way P.O. Box 7854 Madison, WI 53707-7854 REPORT Focus on Energy Community Pilot and Territory-Wide Programs Offered in the Wisconsin Public Service Territory Calendar Year 2012 Evaluation Report October 15, 2013 Public Service Commission of Wisconsin

More information

ROI TOOL INSTRUCTIONS (V4.1)

ROI TOOL INSTRUCTIONS (V4.1) $360,000 $350,000 $340,000 $330,000 $320,000 $310,000 $300,000 $290,000 $359,245 $322,171 $356,995 Current Solution Cost $320,140 Proposed Solution Cost $354,813 $318,170 $352,696 $316,258 $350,642 Year

More information

Estimated impacts of energy and climate change policies on energy prices and bills

Estimated impacts of energy and climate change policies on energy prices and bills Estimated impacts of energy and climate change on energy prices and bills July 2010 Estimated impacts of energy and climate change on energy prices and bills 2 Estimated impacts of energy and climate change

More information

Will the future benefits of this project be large enough to justify the investment given the risk involved?

Will the future benefits of this project be large enough to justify the investment given the risk involved? Chapter 1 The Overall Process Capital Expenditures Whenever we make an expenditure that generates a cash flow benefit for more than one year, this is a capital expenditure. Examples include the purchase

More information

Clean Energy Trends in North Carolina. www.energync.org

Clean Energy Trends in North Carolina. www.energync.org Clean Energy Trends in North Carolina www.energync.org Agenda Background North Carolina Clean Energy Resources & Technologies North Carolina Clean Energy Policies North Carolina Clean Energy Trends Generation

More information

O N L I N E B A N K I N G O N L I N E F I N A N C I A L M A N A G E M E N T. End-User Guide

O N L I N E B A N K I N G O N L I N E F I N A N C I A L M A N A G E M E N T. End-User Guide O N L I N E B A N K I N G O N L I N E F I N A N C I A L M A N A G E M E N T End-User Guide September 24, 2012 CONTENTS Overview... 1 Getting Started... 1 Dashboard... 3 Accounts... 5 Adding an Online Account...

More information

Hydrogen Financial Analysis Scenario Tool (H2FAST)

Hydrogen Financial Analysis Scenario Tool (H2FAST) Hydrogen Financial Analysis Scenario Tool (H2FAST) Marc Melaina, Ph.D. Team Lead for Infrastructure Analysis Transportation and Hydrogen Systems Center, NREL H2FAST Team: Brian Bush, Melanie Caton, Jon

More information

Breakeven Analysis. Takes the user to the data input worksheet of the tool.

Breakeven Analysis. Takes the user to the data input worksheet of the tool. Breakeven Analysis This program allows the user to calculate breakeven price and yield levels and prepare projected net farm income and cash flow statements. The Breakeven Analysis program assists farm

More information

CLEAN ENERGY PROJECT ANALYSIS WITH RETSCREEN SOFTWARE

CLEAN ENERGY PROJECT ANALYSIS WITH RETSCREEN SOFTWARE Training Module SPEAKER S NOTES CLEAN ENERGY PROJECT ANALYSIS WITH RETSCREEN SOFTWARE CLEAN ENERGY PROJECT ANALYSIS COURSE This document provides a transcription of the oral presentation (Voice & Slides)

More information

Economic and financial evaluation of measures and projects

Economic and financial evaluation of measures and projects Economic and financial evaluation of measures and projects Exercice 1: Calculate the simple pay-back period for the installation of a new industrial equipment..the capital cost of installing the new machine

More information

ČEZ, a. s. BALANCE SHEET in accordance with IFRS as of March 31, 2015 in CZK Millions

ČEZ, a. s. BALANCE SHEET in accordance with IFRS as of March 31, 2015 in CZK Millions BALANCE SHEET Assets Property, plant and equipment: 31. 03. 2015 31. 12. 2014 Plant in service 345,012 344,246 Less accumulated provision for depreciation (199,841) (196,333) Net plant in service 145,171

More information

EXAM 2 OVERVIEW. Binay Adhikari

EXAM 2 OVERVIEW. Binay Adhikari EXAM 2 OVERVIEW Binay Adhikari FEDERAL RESERVE & MARKET ACTIVITY (BS38) Definition 4.1 Discount Rate The discount rate is the periodic percentage return subtracted from the future cash flow for computing

More information

10.SHORT-TERM DECISIONS & CAPITAL INVESTMENT APPRAISAL

10.SHORT-TERM DECISIONS & CAPITAL INVESTMENT APPRAISAL INDUSTRIAL UNIVERSITY OF HO CHI MINH CITY AUDITING ACCOUNTING FACULTY 10.SHORT-TERM DECISIONS & CAPITAL INVESTMENT APPRAISAL 4 Topic List INDUSTRIAL UNIVERSITY OF HO CHI MINH CITY AUDITING ACCOUNTING FACULTY

More information

CHAPTER 9 Time Value Analysis

CHAPTER 9 Time Value Analysis Copyright 2008 by the Foundation of the American College of Healthcare Executives 6/11/07 Version 9-1 CHAPTER 9 Time Value Analysis Future and present values Lump sums Annuities Uneven cash flow streams

More information

Cost Benefits analysis

Cost Benefits analysis Cost Benefits analysis One of the key items in any business case is an analysis of the costs of a project that includes some consideration of both the cost and the payback (be it in monetary or other terms).

More information

Introduction to Project Finance Analytic Methods

Introduction to Project Finance Analytic Methods Introduction to Project Finance Analytic Methods Renewable Energy and Project Development and Financing for California Tribes Sacramento, CA Jack Whittier, McNeil Technologies January 2008 Why? Use a model

More information

REC QUESTIONS & ANSWERS

REC QUESTIONS & ANSWERS REC QUESTIONS & ANSWERS Q: What is a REC? A: A Renewable Energy Certificate (REC), also known as a Green Tag, Renewable Energy Credit, or Tradable Renewable Energy Certificate (TREC), is a tradable environmental

More information

Up-take of Renewable Energy in Bass Coast and South Gippsland Shires

Up-take of Renewable Energy in Bass Coast and South Gippsland Shires Up-take of Renewable Energy in Bass Coast and South Gippsland Shires Supporting information for the National Climate Change Adaptation Research Facility project What would a climate adapted Australian

More information

hp calculators HP 12C Net Present Value Cash flow and NPV calculations Cash flow diagrams The HP12C cash flow approach Practice solving NPV problems

hp calculators HP 12C Net Present Value Cash flow and NPV calculations Cash flow diagrams The HP12C cash flow approach Practice solving NPV problems Cash flow and NPV calculations Cash flow diagrams The HP12C cash flow approach Practice solving NPV problems How to modify cash flow entries Cash Flow and NPV calculations Cash flow analysis is an extension

More information

Chapter 11 Macroeconomic Assessment of Action Plan

Chapter 11 Macroeconomic Assessment of Action Plan Introduction Chapter 11 Macroeconomic Assessment of Action Plan There is a strongly positive overall economic impact from the group of recommendations presented in this report. Specifically, the net present

More information

Heating Oil Conservation and Fuel Switching

Heating Oil Conservation and Fuel Switching Heating Oil Conservation and Fuel Switching Summary: Demand Side Management for Heating Oil Demand side management (DSM) is the modification of consumer demand for energy through various methods such as

More information

Green Power Accounting Workshop: Concept Note For discussion during Green Power Accounting Workshop in Mexico City, May 13th 2011

Green Power Accounting Workshop: Concept Note For discussion during Green Power Accounting Workshop in Mexico City, May 13th 2011 Introduction As more companies and government organizations prepare greenhouse gas (GHG) inventories that reflect the emissions directly and indirectly associated with their operations, they increasingly

More information

Capital Budgeting. Financial Modeling Templates

Capital Budgeting. Financial Modeling Templates Financial Modeling Templates http://spreadsheetml.com/finance/capitalbudgeting.shtml Copyright (c) 2009-2014, ConnectCode All Rights Reserved. ConnectCode accepts no responsibility for any adverse affect

More information

One-Minute Spotlight. The Crystal Ball Forecast Chart

One-Minute Spotlight. The Crystal Ball Forecast Chart The Crystal Ball Forecast Chart Once you have run a simulation with Oracle s Crystal Ball, you can view several charts to help you visualize, understand, and communicate the simulation results. This Spotlight

More information

ČEZ, a. s. BALANCE SHEET in accordance with IFRS as of June 30, 2014 in CZK Millions

ČEZ, a. s. BALANCE SHEET in accordance with IFRS as of June 30, 2014 in CZK Millions BALANCE SHEET Assets Property, plant and equipment: 30. 6. 2014 31. 12. 2013 Plant in service 319 440 319 081 Less accumulated provision for depreciation (188 197) (182 282) Net plant in service 131 243

More information